Coyne Has Sale of Business Operations Approved by U.S. Bankruptcy Court

November 04, 2015 01:34 PM Eastern Standard Time

SYRACUSE, N.Y.--(BUSINESS WIRE)--Coyne International Enterprises Corp., a leading U.S. commercial laundry
service company (Coyne), will sell its business operations to three
industrial laundry companies for a total of $43.45 million as part of
its Chapter 11 proceedings. The transactions were approved on October 29
by Judge Margaret Cangilos-Ruiz of the U.S. Bankruptcy Court for the
Northern District of New York in Syracuse.

The three buyers are Cintas Corporation, Prudential Overall Supply
Company and Clean Uniforms and More!

"Since filing for Chapter 11, we have focused our efforts on concluding
this process in an efficient and organized manner, and ensuring a
seamless transition of our customers and routes," said Mark Samson,
Coyne’s CEO. “We believe all three buyers — Cintas, Prudential Overall
Supply and Clean Uniforms — are each a good fit for providing the
high-quality service that customers have come to expect from Coyne."

Specifics about the sales that Coyne expects to complete by November 30,
2015, include:

Cintas will purchase Coyne's customers and inventory in Bristol,
Tennessee; Buffalo, New York; Cleveland, Ohio; London, Kentucky;
Syracuse, New York; and York, Pennsylvania, for $28.25 million.
Current Coyne employees may apply for any of Cintas’ open positions,
which are listed at http://www.cintas.com/careers/.

“As the premier uniform rental company in the industry, Cintas provides
high-quality, innovative products and caring service to our customers.
We look forward to a smooth transition and the opportunity to serve our
new Coyne customers,” said Todd Schneider, President and COO of Cintas’
Rental Division.

Prudential Overall Supply Company will purchase Coyne's operations in
Richmond, Virginia, and Greenville, South Carolina, for $10.2 million.
The company will accept job applications from current Coyne employees.

"We are excited to offer Coyne Textile Services customers the best
possible service experience," said Tom Watts, President of Prudential
Overall Supply. "The depth and experience of our service team, along
with our product and service offering, will help us meet this goal."

Clean Uniforms and More! will purchase Coyne's customers and inventory
in New Bedford, Massachusetts, for $4 million and will accept
applications from Coyne employees for new positions.

"Like Coyne, Clean Uniforms and More! is a privately owned and
family-managed organization, one of the many synergies between our
companies," said Mark Bodzioch, President of Clean Uniforms and More!
"We look forward to welcoming Coyne’s Massachusetts-based clients into
our circle, providing them with unmatched service that is both
professional and personal. We are committed to working closely with
Coyne to ensure the transition goes smoothly.”

In its Chapter 11 filing on July 31, 2015, and under rules approved by
the Bankruptcy Court, Coyne’s existing senior management team had a
preliminary agreement to purchase the company’s operations and continue
running the business unless the auction resulted in higher bids. Coyne
will provide severance to all employees whom it does not retain.

“We are disappointed that the existing Coyne team was outbid. We want to
thank our hard-working employees for their dedication, our customers for
their loyalty and the employee union leaders who ratified agreements
with us prior to the auction,” Samson said. “We are pleased to have
obtained a higher value for the company during the auction and are using
that additional money to increase severance at the locations we lost."

During the year prior to its Chapter 11 filing, Coyne marketed its
assets to prospective industry and financial buyers unsuccessfully.
Except for Coyne's location in Richmond, Virginia, the company's
physical facilities are not included in these three sales and will shut
down.

Headquartered in Syracuse, Coyne was founded in 1929 by J. Stanley Coyne
and grew into one of the largest privately owned industrial laundry
companies in the United States. Coyne currently operates nine plants and
15 service centers in 23 states. Coyne provides comprehensive uniform
sales/rental and laundry services to more than 10,000 customers in a
wide variety of industries. Products offered by Coyne include workplace
uniforms, career apparel, protective garments, shop towels, floor mats,
treated dust mops and wet mops. Coyne also provides linens, mats, towels
and restroom hygiene products.